Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $8.56B
• Dividend Yield: 3.49%
• Average Volume (3M): 8.23M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.08
• Revenue Growth: 2.08%
• EPS Growth: -1.63%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.72
• Shares Outstanding: 513,913,150
• 10 Day Avg. Volume: 6,388,312
• 30 Day Avg. Volume: 8,233,237
• PEG Ratio: -0.47
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 15.91
• Enterprise Value/Market Cap: 2.85
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 1.10
• Enterprise Value/Ebitda: 5.88
• 1Y Price Target: $20.67
• Price Target Upside: 22.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): $83.36B

• Rating: 56 Neutral
• Price Target: $17.00 ▲(0.83% Upside)

The score is driven primarily by constrained financial flexibility from high leverage and thin/softening profitability, partially offset by strong recent cash flow generation. Technical indicators point to a weak trend below key moving averages, while valuation is supportive (low P/E and solid dividend). The latest earnings call was constructive on execution and guidance but flagged meaningful near-term headwinds, and recent refinancing modestly improves maturity risk.

Positive Factors

Strong cash generation

TTM operating and free cash flow materially improved, providing durable liquidity to fund capex, dividends, buybacks and debt service. Strong cash flow helps absorb cyclical retail swings and supports strategic investments despite elevated leverage.

Diversified growth drivers: digital, pharmacy, loyalty

Rapid digital and pharmacy growth plus a ~50M loyalty base diversify revenue and deepen customer relationships. These secular channels raise lifetime value, boost share-of-wallet and enable higher-margin retail media and private-label expansion over the medium term.

Refinancing extends maturities and eases near-term risk

Refinancing shifts material maturities from 2027–2028 into 2032–2034, reducing near-term rollover risk and giving management greater time to execute productivity and transformation plans. Longer maturities improve financing flexibility even at higher coupons.

Negative Factors

High leverage constrains flexibility

Elevated leverage (debt-to-equity ~6.2x) materially limits strategic optionality, increases interest and refinancing sensitivity, and amplifies downside risk. High leverage reduces buffer for margin shocks and constrains capital allocation in prolonged downturns.

Thin and softening profitability

Net margin erosion to ~1.1% signals limited earnings power and vulnerability to input cost or mix shifts. With gross margins stable but SG&A and mix pressures compressing operating profits, the business has less room to absorb shocks or fund margin-accretive investments.

Medicare negotiation and unit-volume pressure create comp volatility

Medicare drug-price negotiation reduces reported pharmacy sales and creates multi-period comparable headwinds, while ongoing unit-volume declines linked to income cohort weakness lower basket frequency. Both trends increase top-line volatility and complicate long-term planning.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. As of February 26, 2022, it operated 2,276 stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and 1,722 pharmacies, 1,317 in-store branded coffee shops, 402 adjacent fuel centers, 22 distribution centers, and 20 manufacturing facilities, as well as various digital platforms. The company was founded in 1860 and is headquartered in Boise, Idaho.

How the Company Makes Money

Albertsons Companies generates revenue primarily through the sale of groceries and related products in its supermarkets. The company's revenue model is based on both in-store sales and online grocery delivery services, which have seen significant growth in recent years. Key revenue streams include the sale of perishable goods, non-perishable items, and pharmacy products. Additionally, Albertsons benefits from its private label brands, which offer higher margins compared to national brands. The company also earns income through fuel sales at its gas stations and from various promotional partnerships with vendors and suppliers. Moreover, Albertsons has been investing in technology to enhance its e-commerce platform, which is expected to further boost sales and improve customer engagement.

Albertsons Companies Financial Statement Overview

Summary

Cash generation is a strength (improved TTM operating and free cash flow), but profitability has softened (TTM net margin ~1.1% vs ~1.9–2.3% prior) and the balance sheet is highly levered (debt-to-equity ~6.2x), limiting flexibility.

Income Statement

Revenue trends are positive overall, with TTM (Trailing-Twelve-Months) revenue up meaningfully versus the latest annual period, but profitability has softened over time. Gross margin has been relatively steady (~27–29%), while operating and net margins have compressed versus prior years (TTM net margin ~1.1% vs ~1.9–2.3% in earlier periods). Net income in TTM is lower than the last several annual periods, highlighting a weaker earnings run-rate despite decent top-line momentum.

Balance Sheet

Leverage is the key constraint. Debt remains large relative to equity, with debt-to-equity elevated in every period and rising again in TTM (about 6.2x). Equity is modest versus the asset base, which reduces balance-sheet flexibility. Return on equity is high (roughly 28–94% across periods), but it is amplified by the low equity level and high leverage, which increases risk if operating performance weakens.

Cash Flow

Cash generation is a relative strength. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are materially higher than the most recent annual period, and free cash flow growth in TTM is very strong versus that prior year. That said, cash flow conversion versus earnings is not consistently strong (free cash flow is below net income in the latest periods), and operating cash flow coverage trends are only moderate, suggesting working-capital swings or other cash uses can meaningfully impact year-to-year cash results.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.72B	80.39B	79.24B	77.65B	71.89B	69.69B
Gross Profit	22.24B	22.26B	22.05B	21.76B	20.72B	20.41B
EBITDA	4.15B	4.08B	4.53B	4.85B	4.87B	3.78B
Net Income	870.00M	958.60M	1.30B	1.51B	1.62B	850.20M
Balance Sheet
Total Assets	27.09B	29.31B	28.79B	28.75B	30.77B	29.39B
Cash, Cash Equivalents and Short-Term Investments	214.50M	339.20M	212.00M	477.20M	2.97B	1.78B
Total Debt	15.43B	14.18B	14.24B	15.01B	15.30B	16.07B
Total Liabilities	24.59B	25.92B	26.05B	27.14B	27.75B	28.06B
Stockholders Equity	2.50B	3.39B	2.75B	1.61B	3.02B	1.32B
Cash Flow
Free Cash Flow	2.08B	749.40M	628.20M	700.00M	1.91B	2.27B
Operating Cash Flow	3.98B	2.68B	2.66B	2.85B	3.51B	3.90B
Investing Cash Flow	-2.60B	-1.89B	-1.75B	-1.98B	-1.54B	-1.57B
Financing Cash Flow	-1.41B	-684.10M	-1.18B	-3.37B	-789.50M	-1.04B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Negative. The current price of 16.86 is below the 20-day moving average (MA) of 16.88, below the 50-day MA of 17.18, and below the 200-day MA of 19.00, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMKTA	72 Outperform	$1.39B	17.01	5.29%	0.93%	-5.42%	-20.80%
SFM	69 Neutral	$6.90B	13.48	36.96%	―	16.60%	49.76%
WMK	67 Neutral	$1.76B	18.75	7.22%	2.06%	3.11%	6.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ACI	56 Neutral	$8.56B	10.72	29.65%	3.49%	2.08%	-1.63%
KR	56 Neutral	$39.77B	57.57	7.75%	2.15%	-1.77%	-70.83%
GO	52 Neutral	$935.25M	-195.17	-0.37%	―	7.22%	-108.99%

Albertsons Companies Corporate Events

Albertsons Companies Issues New Senior Notes to Refinance Debt

On February 2, 2026, Albertsons Companies and certain subsidiaries issued $1.2 billion of new 5.625% senior notes due 2032 and $900 million of additional 5.750% senior notes due 2034 in a private offering to institutional and non-U.S. investors under Rule 144A and Regulation S. The unsecured, guaranteed notes, which carry detailed redemption mechanics and standard high-yield covenants, are intended to refinance in full the company’s $1.35 billion 4.625% notes due 2027 and $750 million 5.875% notes due 2028 and to cover related fees and expenses, effectively extending Albertsons’ debt maturities and reshaping its capital structure while preserving financial flexibility for bondholders through change-of-control protections and covenant-based safeguards.

The most recent analyst rating on (ACI) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.

Albertsons launches refinancing to extend debt maturities

On January 22, 2026, Albertsons Companies and several subsidiaries launched a refinancing push in the bond market, announcing plans to redeem in cash the full $1.35 billion of 4.625% senior notes due 2027 and the $750 million of 5.875% senior notes due 2028, with the redemption expected to occur on February 21, 2026. To fund this move, the company priced an upsized private offering to institutional and offshore investors of $1.2 billion of new senior notes due 2032 at 5.625% and $900 million of additional 5.750% senior notes due 2034, issued at 98.5% of face value and fungible with its existing 2034 notes, with closing expected around February 2, 2026. The transaction extends Albertsons’ debt maturities and consolidates its capital structure by shifting obligations from 2027–2028 to 2032–2034, a step that could ease near-term refinancing risk and provide greater financial flexibility for operations and stakeholders, albeit at somewhat higher long-term coupon costs.

The most recent analyst rating on (ACI) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.

Albertsons Companies Appoints Scott Wille to Board

On November 12, 2025, Lisa Gray resigned from the Board of Directors of Albertsons Companies, Inc., with no disagreements cited between her and the company or its management. Scott Wille, Senior Managing Director of Cerberus Capital Management, was appointed to the Board following her resignation as per the Stockholders’ Agreement. Cerberus, a significant shareholder in Albertsons, manages approximately $66 billion in assets and has a substantial influence on the company’s board appointments.

The most recent analyst rating on (ACI) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.

Albertsons Companies Issues $1.5 Billion in Senior Notes

On November 10, 2025, Albertsons Companies, Inc. and its subsidiaries issued $1.5 billion in senior notes, with maturities set for 2031 and 2034. The proceeds from these notes are intended to refinance existing debt, repay part of its revolving credit borrowings, and cover related fees, potentially strengthening the company’s financial position and flexibility.

The most recent analyst rating on (ACI) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.